The relative decrease change. Definition:
The relative decrease change is the difference in an indicator over two periods in time, v1 - v2, relative to the value of the indicator in the earlier period, v1.
- Where:
- v1 - is called the reference value (original, initial number);
- v2 - is called the new value (the end value).
- In our case: v1 = 520,647, v2 = 351,528.7.
The relative decrease change. Formula:
The relative decrease change =
The actual change / |v1|
(v1 - v2) / |v1| =
- Legend:
- v1 - the original number
- |v1| - the positive value of v1, |v1| >= 0. By example: |10| = 10; |-10| = 10.
- v2 - the new value
- The actual change = v1 - v2
- / - the fraction bar (division)
Why do we use |v1| in the formula instead of v1?
- Let's see what happens if we use v1 instead of |v1|:
- Choose a random negative number as the initial value: - 15.
- Choose a random positive number for the end value: 7.
Formula and calculation:
(v1 - v2) / v1 =
(- 15 - 7) / - 15 =
-22 / - 15 ≈
1.466666666667 ≈
1.47
Although the absolute difference is negative: -22, the relative decrease change is positive: 1.47. By using |v1| instead of v1, the error is corrected.
The relative percent decrease change. Detailed calculations below
By multiplying a number by the fraction 100/100,
we change only the form of the result, not the result.
- 100/100 = 100% = 100 ÷ 100 = 1.
- n × 100/100 = (n × 100)/100 = (n × 100)%, any number.
The relative percent decrease change. Formula:
The relative percent decrease change =
The relative decrease change × 100/100 =
(The relative decrease change × 100)/100 =
(The relative decrease change × 100)%
Calculate the relative percent decrease change:
(520,647 - 351,528.7)/|520,647| =
169,118.3/520,647 =
169,118.3 ÷ 520,647 =
169,118.3 ÷ 520,647 × 100/100 =
(169,118.3 × 100 ÷ 520,647)/100 =
(16,911,830 ÷ 520,647)/100 ≈
32.482334479984/100 =
32.482334479984% ≈
32.48%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 520,647 to the final, end value 351,528.7:
Rounded off to max. 12 decimal places ≈ 32.482334479984%
Rounded off to max. 2 decimal places ≈ 32.48%
The absolute (actual) difference
520,647 - 351,528.7 = 169,118.3
By what percentage has 520,647 decreased?
Answer: By ≈ 32.48%
By what percentage is 351,528.7 smaller than 520,647?
Answer: By ≈ 32.48%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).